This Side Hustle Q&A features Gen Z salesperson Ray Cao X Magazineonline sneaker marketplace and seller.
Photo credit: Courtesy of Ray Cao
What did your day job involve, when did you begin pursuing your side hustle and why did you turn into interested in entrepreneurship?
I used to be a college student working as a part-time barista making about $8 an hour (minimum wage at the time) at a bubble tea shop in New York City. My family was $200,000 in debt as a result of speculative investing and gambling. We were so desperate that my parents borrowed money from relatives to survive. This clearly strained their relationship, and my family quickly became the subject of inappropriate gossip. I used to be embarrassed, scared and insecure. I finally turned this sense of vulnerability into action and took the plunge into entrepreneurship.
When did you begin your side business and where did you discover the inspiration for it?
I began working on the side in 2015 when I had just turned 18. Sneaker and streetwear culture was gaining popularity, and demand for these coveted brands was growing. I learned from a friend that it could be a lucrative business opportunity and we each jumped at it. The inspiration to begin and proceed this business has at all times been my immigrant family.
Throughout my childhood and adolescence, I spotted that I used to be much poorer than my peers. My parents were seamstresses and worked around the clock to support their family. My mother told me that she only earned a dime for each fabric she sewed, which totaled only $200 a week. Even my late grandmother spent her days collecting bottles and cans for recycling at five cents each. My parents and grandmother made it here through sacrifice, cultural differences and language differences. To at the present time, their story fuels my ambitions and allows me to develop.
What were the first steps you took to interrupt away from the game?
I joined online communities and forums (Reddit, Facebook, NikeTalk) to do some research and opened a checking account and card to buy drops online. I ultimately purchased my first item, a Supreme Air Jordan Desert Camo 5 (2015), for $225 and sold it locally for a profit of $400.
What were the biggest challenges you faced in building your side team and how did you overcome them?
As I progressed through college and focused on my finance profession, I now not had the energy to do the physical work required in the business (sorting incoming inventory, shipping outgoing orders, performing quality control, and dealing with purchase and sales returns). . I automated the business using Excel spreadsheets and worked with parents to facilitate day by day operations. During this time, I also gained access to stock levels in the StockX warehouse. This dramatically reduced my energetic work time and commitment to 10 hours a month. Everything I needed to administer my business could now be done from my laptop anywhere in the world.
As my available capital increased, a recent challenge arose: order size. For example, with $1,000 and a publication that was in high demand, it was easy to regulate the size of my order to whatever I could afford. When the available capital increases a hundredfold or a thousandfold, the situation becomes more complex. I remember placing an order for around $10,000 for the Nike Blazer Mid 77 Vintage White Black. The first 30 or so units sold at a 15% premium, but demand dropped as I flooded the market with available pairs. I lost about $3,000 and quickly realized how vital order volume and liquidity were.
How long did it take for you to attain stable monthly income? How much did the side hustle earn?
In the early stages of growth, monthly revenues were closely related to the amount of capital available. As the company has matured, monthly revenue has peaked at just below $20,000 over the past two years.
What does total revenue seem like now?
I earned approximately $1.53 million in total revenue on StockX.
What do you enjoy most about this side hustle?
I like the hands-off nature of this business because it allows me to concurrently grow my financial profession (whether that is a recent business enterprise or one other corporate gig). The network of partners and relationships I’ve built along the way are invaluable, which is why I’m surrounded by so many smart people – special shout out to the StockX team!
What is your advice for others who need to be a successful seller on StockX?
Invest in your long-term relationships; Don’t be short-sighted and chase every trade with profit in mind. Your network is your principal obstacle to growth, so take every opportunity to point out potential partners the value you possibly can bring to them. Good information is useful and rare: conduct market research in small area of interest communities and build connections organically. Finally, you wish a good accountant to begin your small business and keep accurate books and records.
This article is part of our ongoing series highlighting the stories, challenges and triumphs of being Young Entrepreneur®.
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